A reader who likes to send me his portfolio decisions has had a better call on the markets lately. What I like about him is that he sees his portfolio as an investment, is very critical of US government policy, is nervous about the debasing of the dollar via inflation and takes long term views. He's older than I am and a professor from the North, but I'll call him Stevie.
Stevie has been a big fan of TIPS via the Inflation Linked Exchange Traded iShares Fund (TIP- $111.43), but recently he's been selling and reallocating.
After selling some more TIP and splitting the proceeds between cash and closed end funds that focus on dividend paying stocks, here is his portfolio:
7.5% equities via four closed end funds
27.5% cash
40% TIP funds
20% real estate
5% gold coin
Disclosure: I own TIP. I have recently sold some TIP. I hold Treasury Inflation Protects Bond Directly. I do not own any equity-oriented closed end funds. The portfolio described by "Stevie" and its performance described above is not verified.
Opinion Disclosure: I have enjoyed watching the Stevie portfolio but I think it is way underallocated to equities.